Overall logistics rise 6.6% in 2011, account for 8.5% of GDP
Jun 15, 2012 11:32 AM
The Council of Supply Chain Management Professionals (CSCMP) released its 23rd Annual "State of Logistics Report," presented by Penske Logistics. The report reveals that total US business logistics costs in 2011 rose to $1.28 trillion, a 6.6% increase from the previous year and accounting for 8.5% of the US gross domestic product (GDP).
The report, authored by transportation consultant Rosalyn Wilson of Delcan Inc, has tracked and measured all costs associated with moving freight through the US supply chain since 1988. This year's report presents an overview of the economy over the past year, the logistics industry's key trends, and the total US logistics costs for 2011. It also examines which sectors of the industry are recovering, which are facing challenges, and areas that can be targeted for increased investment. The research concludes with a brief overview of industry indicators for the remainder of 2012. The supply chain management benchmark report is now available for distribution.
This year's report reveals that with overall revenue 15.3% higher than 2010, railroads gained market share, especially in intermodal, and did not experience the sort of capacity problems faced by the trucking sector. Trucking companies are also using intermodal rail help to offset the impact of driver shortages and the costs of acquiring and maintaining new equipment. In spite of tightening capacity and an overall decline in volume, trucking rates were up 5% to 15% in 2011.
Ocean carriers' woes continued with growing excess capacity, rate erosion, service declines, and operational losses.
Inventory carrying costs in 2011 continued their rising trend and overall inventories have returned to pre-recession levels, which could be a cause for concern for the economy. The growth has occurred among wholesalers and manufacturers while retail inventories remained flat, indicating that inventory management processes have changed.
The "State of Logistics Report" is available to CSCMP members free of charge as part of their member benefits at http://cscmp.org/memberonly/state.asp. The price of the report is $395.00 USD.
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